What is the purpose of an Accountable Care Organization (ACO)?

• A. A plan that guarantees no hospitalizations
• B. A plan that assigns patients to a primary care physician
• C. A care model focused on coordination and outcomes, doctors and hospitals work together to manage care and cost
• D. A government program for retirees

Answer: (C)

An ACO is a care model that emphasizes coordination and outcomes while controlling costs. Doctors and hospitals across the care continuum work together to manage the health of a defined patient group, focusing on preventing problems, ensuring smooth transitions between settings, and using evidence-based practices. Because payment is tied to value rather than volume, the ACO can share savings with payers when quality goals and cost targets are met. This structure encourages closer collaboration to keep people healthier and reduce unnecessary or duplicate services, rather than simply delivering more care.

The idea isn’t to guarantee zero hospitalizations, nor is it just about assigning patients to a primary care physician, and it isn’t a government program specifically for retirees.